MIRA INFORM REPORT

Report Date :

25.11.2014

IDENTIFICATION DETAILS

Name :	S G STRIPS LIMITED
Registered Office :	178, Mahatma Gandhi Road, Kolkata – 700 007, West Bengal
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	12.06.1994
Com. Reg. No.:	21-052024
Capital Investment / Paid-up Capital :	Rs.26.898 Millions
CIN No.: [Company Identification No.]	U27109WB1994PLC052024
IEC No.:	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	CALS16898A
PAN No.: [Permanent Account No.]	AADCS8378R
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Iron and Steel Coil and TMT Bars
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Management has failed to file the latest financials of FY14, with the statutory authorities. Subject is an established company having moderate track record. As per available of F113, the Profitability of the company seems to be low. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealing with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

N E W S

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL  to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Vineet Agarwal
Designation :	Account Manager
Contact No.:	91-9903651747
Date :	22.11.2014

LOCATIONS

Registered Office :	178, Mahatma Gandhi Road, Kolkata – 700 007, West Bengal, India
Tel. No.:	91-33-22111484 / 22105797 / 98
Mobile No.:	91-9903651747 (Mr. Vineet Agarwal)
Fax No.:	91-33-22480366 / 0357
E-Mail :	sgstrips@hotmail.com vineetagarwal.kolkata@gmail.com
Area :	1000 Sq. ft.
Location :	Rented
Corporate Office :	8, Bentinck Street, Taher Mansion, Kolkata – 700 001, West Bengal, India
Tel. No.:	91-33-22111484
Fax No.:	91-33-22480366
Factory :	28/1, Gaushalal Road, Liluah, Kolkata, India

DIRECTORS

As on 30.09.2013

Name :	Mr. Sanjay Banthia
Designation :	Director
Address :	3A, Notore Park, 2^nd Lane, Kolkata – 700 019, West Bengal, India
Date of Birth/Age :	14.06.1961
Date of Appointment :	31.10.1994
DIN No.:	02277125
Name :	Mr. Ramendranath Mondal
Designation :	Additional Director
Address :	Part No. 71, Uttar Dum Dum North 24, Parganas Kolkata – 700 051, West Bengal, India
Date of Birth/Age :	15.03.1974
Date of Appointment :	14.11.2009
DIN No.:	00584707
Voter ID No.:	WB/20/138/210476
Name :	Mr. Kailash Chandra Kedia
Designation :	Director
Address :	Prantik-4, Thakur Nitya Gopal Road, P. O. Panihati, Kolkata – 700 114, West Bengal, India
Date of Birth/Age :	18.07.1949
Date of Appointment :	29.09.2012
DIN No.:	05132546

KEY EXECUTIVES

Name :	Mr. Vineet Agarwal
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

SHAREHOLDING DETAILS FILE ATTACHED

As on 30.09.2013

Equity Share Break up (Percentage of Total Equity)

Category	Percentage	%age
Bodies corporate	96.66	96.66
Directors or relatives of Directors	0.06	0.06
Other top fifty shareholders	3.28	3.28
Total	100.00	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Iron and Steel Coil and TMT Bars

Products :

Product Description	ITC Code
Iron and Steel Goods	732599.09

Brand Names :

Not Divulged

Agencies Held :

Not Divulged

Exports :

Products :

Not Divulged

Countries :

Not Divulged

Imports :

Products :

Not Divulged

Countries :

Not Divulged

Terms :

Selling :

Cash and Credit (30 Days)

Purchasing :

Cash and Credit (30 Days)

GENERAL INFORMATION

Suppliers :

Reference :	Shree Laxmi Industrial Corporation
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

Customers :

Wholesalers and Retailers

Reference :	Concast Global Limited, Kolkata
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Experience :	Not Divulged
Maximum Limit Dealt :	Not Divulged

No. of Employees :

200 (Approximately)

Bankers :

Banker Name	Allahabad Bank
Branch Address	Kolkata Main Branch, 14, India Exchange Place, Kolkata – 700 001, West Bengal, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Fund and Non Fund Total Rs.200.000 Millions (From Allahabad Bank)
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
Short-term borrowings
Working capital loans from banks (Hypothecation of Stock, Investment, Book Debts, Plant and Machinery)	253.435	253.429
Total	253.435	253.429

Banking Relations :	--
Auditors :
Name :	D N Gupta and Associates Chartered Accountants
Address :	10, Ganesh Chandra Avenue, 5^th Floor, Suit No. 32, Kolkata – 700 013, West Bengal, India
PAN No.:	ADLPG2924M
Memberships :	--
Collaborators :	--
Associates/Subsidiaries :	--
Sister Concern :	Not Divulged

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2689840	Equity Shares	Rs.10/- each	Rs.26.898 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	26.898	26.898	26.898
(b) Reserves & Surplus	86.378	86.012	85.652
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	16.800	16.800	15.000
Total Shareholders’ Funds (1) + (2)	130.076	129.710	127.550
(3) Non-Current Liabilities
(a) long-term borrowings	0.243	0.238	0.233
(b) Deferred tax liabilities (Net)	2.165	2.340	2.499
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	2.408	2.578	2.732
(4) Current Liabilities
(a) Short term borrowings	253.435	253.429	253.380
(b) Trade payables	88.885	79.573	80.304
(c) Other current liabilities	2.563	1.479	2.401
(d) Short-term provisions	0.437	0.346	0.683
Total Current Liabilities (4)	345.320	334.827	336.768
TOTAL	477.804	467.115	467.050
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	16.961	19.519	17.757
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	0.405	0.405	0.405
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	1.299	1.909	1.909
(e) Other Non-current assets	0.000	0.020	0.040
Total Non-Current Assets	18.665	21.853	20.111
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	402.327	336.725	361.473
(c) Trade receivables	46.664	101.449	72.345
(d) Cash and cash equivalents	7.793	6.448	6.440
(e) Short-term loans and advances	0.001	0.001	0.011
(f) Other current assets	2.354	0.639	6.670
Total Current Assets	459.139	445.262	446.939
TOTAL	477.804	467.115	467.050

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Income	3813.008	3319.397	4812.495
		Other Income	0.395	0.000	0.094
		TOTAL (A)	3813.403	3319.397	4812.589
Less	EXPENSES
		Cost of materials consumed	757.531	0.000	698.972
		Purchases of stock-in-trade	3048.369	3225.537	4037.888
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(65.601)	24.748	15.508
		Employee benefit expense	3.500	3.471	3.368
		Other expenses	29.113	21.952	24.776
		TOTAL (B)	3772.912	3275.708	4780.512
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		40.491	43.689	32.077
Less	FINANCIAL EXPENSES (D)		37.088	40.317	27.957
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3.403	3.372	4.120
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.574	2.783	2.690
	PROFIT BEFORE TAX (E-F) (G)		0.829	0.589	1.430
Less	TAX (H)		0.441	0.205	0.526
	PROFIT AFTER TAX (G-H) (I)		0.388	0.384	0.904
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		16.705	16.321	15.417
	BALANCE CARRIED TO THE B/S		17.093	16.705	16.321
	Earnings Per Share (Rs.)		0.14	0.14	0.34

Particulars	31.03.2014
Sales Turnover (Approximately)	3500.000

The above information has been parted by Mr. Vineet Agarwal.

Note : Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry.

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
Net Profit Margin PAT / Sales	(%)	0.01	0.01	0.02
Operating Profit Margin (PBDIT/Sales)	(%)	1.06	1.32	0.67
Return on Total Assets (PBT/Total Assets}	(%)	0.17	0.13	0.31
Return on Investment (ROI) (PBT/Networth)		0.01	0.01	0.01
Debt Equity Ratio (Total Debt /Networth)		2.24	2.25	2.25
Current Ratio (Current Asset/Current Liability)		1.33	1.33	1.33

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Share Capital	26.898	26.898	26.898
Reserves & Surplus	85.652	86.012	86.378
Share Application money pending allotment	16.800	16.800	16.800
Net worth	129.350	129.710	130.076
long-term borrowings	0.233	0.238	0.243
Short term borrowings	253.380	253.429	253.435
Total borrowings	253.613	253.667	253.678
Debt/Equity ratio	1.961	1.956	1.950

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	4812.495	3319.397	3813.008
		-31.025	14.871

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	(Rs. In Millions)	(Rs. In Millions)	(Rs. In Millions)
Sales	3813.008	3319.397	4812.495
Profit	0.904	0.384	0.388
	0.02%	0.01%	0.01%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOAN

Rs. In Millions

Particular	As on 31.03.2013	As on 31.03.2012
Long-term borrowings
Other loans and advances	0.243	0.238
Total	0.243	0.238

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90251812	25/01/2010 *	281,000,000.00	ALLAHABAD BANK	KOLKATA MAIN BRANCH, 14, INDIA EXCHANGE PLACE, KO  LKATA, West Bengal - 700001, INDIA	A79940243

* Date of charge modification

FIXED ASSETS

· Tubewell

· Factory Shed and Building

· Plant and Machinery

· Electrical Equipment

· Laboratory Equipments

· Furnace

· Motor Car

· Furniture and Fixture

· Office Equipment

· Cycle

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.77
UK Pound	1	Rs.96.78
Euro	1	Rs.76.59

INFORMATION DETAILS

Information Gathered by :	NYA
Analysis Done by :	SUB
Report Prepared by :	SPR

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.